Meaning of Dirty Float

The Central Bank (RBI in India) sometimes intervenes in the volatile foreign exchange market in order to manage excessive volatility and to influence the value of a floating currency in an orderly condition. Such intervention of Central bank is called “Dirty Float”. The recent communication of the regulator informs that the bank would intervene in…

Key policy rates remain unchanged in the 5th bi-monthly monitory policy statement of RBI

In the fifth bi-monthly monitory policy statement for 2015-16 (01.12.2015), RBI said that on the basis of an assessment of the current and evolving macroeconomic situation, it has been decided to keep policy  repo rate under the liquidity adjustment facility (LAF)  unchanged at 6.75 percent.  The  cash reserve ratio (CRR) of scheduled banks unchanged at…